| Annual Report of the Mississippi &
Tennessee RR |
| as of October 1, 1861, |
| President's Report |
| |
| Office Miss. & Tenn. Railroad
Company |
| Memphis, October 1st, 1861 |
| |
| The President and Directors
of the Mississippi & Tennessee Railroad Company, in this their eighth
annual report to their Stockholders, are happy to be able to
congratulate them on the completion of their enterprise. |
| It has made but slow and
laborious progress, but the cause of this is understood and appreciated
by those conversant with the history of the works. We commenced this
road with a stock list which even now does not exceed $830,000.00, of
which amount $250,000.00 was paid in Memphis city bonds, from which the
Company could not realize much more than half their nominal amount, and
over one hundred thousand was issued to contractors, for work, at a
valuation not exceeding one half, leaving little more than $600,000.00
as the basis for the construction of a railroad which has cost
$2,255,101.53. |
|
We owe our success to various causes, and among them, and
perhaps most instrumental of all, was the integrity and fidelity of
the officers of the Company. We have met with no losses arising from
misconduct on the part of any of the various officers who have been
connected with the road We think every dollar paid out, has pretty
well got its worth in labor or service. |
| We have, likewise, been
fortunate in the financial management of the enterprise. Although always
straitened for money, we have shown to the world that we had regard for
our pecuniary pledges, and have never hesitated to endorse those pledges
individually; thus embarking our own fortunes with those of the
Railroad, and thus obtaining the confidence and aid of capitalists. We
should ever be grateful to the planters of Panola and DeSoto counties,
Mississippi, and to the banks of South Carolina and Georgia, as well as
the banks of this city, for the large pecuniary loans they made us
during the progress of our road. Without the aid obtained from these
sources we could never have built the road. In ordinary times we have
been able to meet our pecuniary engagements promptly; but of late, on
account of commercial and financial disorders, incident to the war
pervading our country, we have been compelled to ask for renewals, which
always more or less impair credit. |
|
But whatever course necessity may compel us to take in
this particular, our creditors may be assured that we will ever have
a zealous regard for their rights as creditors and as soon as a
market is open for cotton their debts will be speedily paid off. |
|
Our floating debt, as may be seen by reference to the
Treasurer's Report, amounts to $564,436.17. This may appear to be a
high figure, but when the net receipts of the local business done by
the road hitherto, and the comparatively small funded debt is
considered, there is nothing formidable in that amount. |
|
By funding $150,000.00 of this floating debt in that
amount of income bonds yet undisposed of, the business of our road
for three years, in times of peace and commercial prosperity, we can
reasonably calculate, would sweep this entire indebtedness out of
existence. |
|
In making such calculations we only judge of the future
receipts of our road by the past. In the present aspect of the times
we can form no reasonable calculation of the future. |
|
By reference to the Report of our Superintendent you will
see that the receipts of our road for the corporate year just ended
aggregate to $215,187.25, from the following sources: |
| From |
Passengers |
$81,564.87 |
| " |
Freight |
122,458.38 |
| " |
Express |
2,207.33 |
| " |
Mails |
8,712.50 |
| " |
Privileges |
244.17 |
| |
|
$215,187.25 |
|
|
And expenses as follows: |
| For |
Conducting and Transportation |
$3,3589.05 |
|
| " |
Motive Power |
24,807.25 |
|
| " |
Maintenance of Way |
31,400.60 |
|
| " |
" "
Cars |
9,010.92 |
|
| |
|
$98,897.82 |
|
| |
Leaving Net Earnings |
|
$116,280.43 |
|
|
This shows a falling off in gross receipts from last year
of $18,339.84, and in net receipts of $17,845.21. , This is not very
encouraging, but it is no more than we should expect from the short
crops of cotton last year in the country our road permeates, and the
almost entire suspension of commerce during the last six months. Our
road is truly a cotton country road, and cannot flourish greatly
when that great staple languishes. Being out of the line of our
military movements, its receipts have been limited from that source,
and can hardly in the future be expected to be considerable. |
|
But it will be seen by reference to the Superintendent's
tables that the decline in receipts is confined to freight
transportation -- passenger receipts having increased about $4,000.
And these tables show a steady increase of through passenger
receipts every month from the day of finishing the road. |
|
We may calculate from these figures that even though
there be a continued suspension of the cotton business during the
next corporate year, the receipts will enable our road to pay its
corporate expenses and the interest on its indebtedness. Our road is
on the direct line of travel between Memphis and New Orleans,
connecting at Memphis with lines of railway to Louisville, Kentucky,
Richmond, Charleston and Savannah. We have reason to expect a heavy
through passenger business, whose receipts will at any rate suffice
to keep alive our enterprise. |
|
By reference to our Chief Engineer's Report it will be
seen that during the past corporate year we have expended in
construction $400,061.53, and this accounts for the large increase
of our floating indebtedness. |
|
It will likewise be seen that the entire cost of the
road, from Memphis to Granada, a distance of ninety-nine miles,
amounts to $2,255,601.38, or about $22,777.72 per mile. Of this cost
about $104,792.81 was paid in the capital stock of the Company, and
a large amount 67,768 in its time bonds, maturing in one, two, three
and four years from the time of finishing the road. |
|
When the durable, permanent character of a great portion
of the road is considered, and the fact that we have been compelled
to construct not less than twenty-six bridges, five of which are
over considerable rivers, this rate cannot but be considered an
economical expenditure. There is no doubt but what the cost would
have been greatly reduced if we could have always paid contractors
cash, in the place of stock and time bonds. |
|
Your financial condition can be seen by reference to the
Treasurer's balance sheet. |
|
Our funded debt amounts to $862,000.00, composed of the
following items: |
| First Mortgage Bonds |
$400,000.00 |
| Income Bonds |
147,000.00 |
| Loan of State of Tennessee |
95,000.00 |
| Loan of State of Mississippi |
220,000.00 |
| |
$862,000.00 |
|
|
Upon our first mortgage bonds we pay seven per cent.
interest per annum; on our State of Tennessee loan, six per cent.;
on our Mississippi State loan, eight per cent.; upon $20,000.00 of
the Mississippi State loan, three per cent. fund, we pay no interest
at all. The annual interest upon our funded debt amounts to $64,000.
We have hitherto, with an unfinished road, been able to meet the
interest payments promptly, and we have no hesitation in saying that
there is no doubt of their prompt payment in future, on the basis of
a finished road. |
|
We have yet on hand $153,000.00 of income bonds which we
will hardly be able to dispose of on our terms (par) until
confidence is restored to capital. Whenever the time does come
favorable to ????? of our floating indebtedness will ease of
greatly, and make the balance of that sort of indebtedness more
manageable. |
|
By the addition of a new engine, which the South Carolina
Railroad Company were kind enough to sell us, our present rolling
stock may suffice for the limited business we may reasonably expect
during the present disturbed times; but if the ports should be
opened and commerce resumes again under happy auspices, necessity
may compel us to add largely to our rolling stock, especially
freight cars and locomotives. |
|
We have had, under the supervision of S. W. Remer,
several new passenger and express cars built at our own Company
shops, during the last year, and we can say with confidence that for
beauty of finish and durability of material and construction they
are not surpassed by any work of the kind in the country. It is
unfortunate for us that our means and business will not allow us at
present to construct durable depot and machine shop buildings at
Memphis. Our rolling stock and valuable material are exposed to
constant risks from fire, but I cannot see how we can avoid this at
present. |
|
We are well satisfied with the various officers of the
road; they have given us material assistance in the management and
direction of the road, and we commend them to the good opinion of
the Stockholders. |
|
F. M. White, President |
|